Whether it’s international DJs at weddings, foreign technology companies for conferences or licence fees to franchisors abroad – many hotels and restaurants are now part of international service and contract structures. What many people don’t know is that this can lead to tax risks and potential payment obligations. The reason: Section 50a of the Income Tax Act (EStG).
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According to the Statistisches Bundesamt (Federal Statistical Office), there were around 43 million homes in Germany at the end of 2023 – more than half of which are rented, many by private individuals. However, many private landlords are unaware that they too can be considered VAT-registered businesses.
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The tax classification of real estate that is used for both business and private purposes is a complex issue in practice that is often overlooked. Tax classification is particularly important for mixed-use real estate, as it determines the tax treatment of acquisition and production costs, depreciation and subsequent capital gains tax.
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Due to the high property prices, even supposedly “normal” houses and condominiums often exceed the tax-free amounts in the event of inheritance or a gift. However, there are specific tax exemptions, especially for owner-occupied residential property, which can bring considerable financial benefits. If you bequeath or give away a property,
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Would you like to sell cryptocurrencies and transfer the proceeds to your account?
It doesn’t necessarily sound like a problematic process, but it can become a major challenge, keyword: crypto proof of origin or proof of funds. As the crypto market becomes increasingly regulated, this proof is becoming more and more important. In the following article, we will show you why proof of funds may be required for crypto, what it must contain and how you can best prepare for it.
Interim invoices are part of everyday life in the hotel industry and gastronomy – but from a financial administration perspective, they harbour considerable risks. Restaurateurs who pass on interim bills to their guests without clear allocation or without a transaction number risk tax consequences and legal trouble.
What do restaurateurs need to bear in mind to play it safe during tax audits?
Many people put off dealing with their will. However, anyone who has assets – whether in the form of real estate or company shares – or a complex family structure should not rely on the legal succession process. This often leads to disputes, tax burdens or outcomes that nobody wanted.
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The Berlin will is popular among married couples for jointly settling their estate. However, this type of will has tax disadvantages for children that are difficult to ‘correct’ after the death of one spouse. One way to avoid tax disadvantages for children after the death of a spouse is to make a directed disclaimer.
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The need to protect your assets from third parties is legitimate. Asset protection is an important issue, particularly for people with large and very large assets, and should always be considered when planning your estate.
A recent example of asset transfers to protect assets from third-party claims is the case of René Benko,
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In a letter dated 6 March 2025, the Federal Ministry of Finance (BMF) clarified its position on the taxation of crypto assets and tightened key points. Particular emphasis is placed on the taxpayer’s obligations to cooperate, which have often been underestimated in the past. Anyone who trades in cryptocurrencies or otherwise generates income from digital assets now has a significantly greater responsibility to disclose all tax-relevant information to the tax office in full – regardless of the platform on which the trading took place.
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Close relatives can be disinherited by a will – but the compulsory portion remains. It gets really tricky when the estate is mostly made up of property. The compulsory portion claim can then become a big cash flow problem for the heirs. How can you avoid disputes over the compulsory portion?
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In the context of business succession, it is common for business owners to transfer company shares to the next generation by way of gifts.
It is equally conceivable to gift company shares to employees for strategic reasons. But is such a gift, e.g. of shares in a limited liability company (GmbH), subject to income tax as remuneration? The Federal Fiscal Court recently addressed this question.
The construction withholding tax is an important measure aimed at preventing tax evasion and illegal working practices in the construction industry. The recipient of the construction service, e.g. the landlord who purchases the construction work, must therefore pay 15% of the invoice amount directly to the tax office in certain cases.
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In March 2025, the Federal Ministry of Finance published an important decision that should please many restaurateurs and hoteliers: the previous general requirement to record tips paid to employees has been revoked. This represents a reduction in bureaucracy for the catering industry, which is often the focus of tax audits, particularly with regard to cash management.
In this article, you will learn what this change means and what effects it will have in practice.
The conditions for building new homes have become extremely difficult: rising material prices, high manufacturing costs and, most recently, massive increases in construction interest rates are putting a heavy strain on residential construction. Nevertheless, investing in rental housing can still be worthwhile – tax depreciation options play a key role here.
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In many companies, employees are not only remunerated in the form of salary and bonus payments, but also through additional benefits or non-cash remuneration. As a rule, these so-called non-cash benefits are taxable. But what exactly are non-cash benefits and what should be considered with regard to taxation?
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Private investors in Germany are disadvantaged in many ways from a tax perspective. Setting up a trading company can be a good option here to save taxes on crypto profits. We will show you the advantages and disadvantages of a trading company for crypto, who it is worthwhile for and what needs to be considered when setting it up.
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For restaurateurs, a functioning cash register with an intact technical security system (TSS) is essential. This applies not only to business operations, but also to compliance with legal requirements vis-à-vis the tax authorities.
In this article, you will learn what measures you need to take to minimise tax and legal risks.
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On 6 March 2025, the German Federal Ministry of Finance (BMF) published a new letter on the income tax treatment of crypto assets, replacing the previous letter from May 2022. In large parts, the contents of the previous BMF publication are confirmed, but there are also some exciting changes that crypto investors should be aware of.
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Cryptocurrencies such as Bitcoin, Ethereum and other digital assets present a new challenge in the drafting of wills. Due to a lack of legal regulations and a lack of established case law, there are considerable legal and tax uncertainties regarding the inheritance and administration of crypto assets. In order to enable heirs to access digital assets smoothly and to minimise tax risks,
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Often, property or real estate assets are held either as private assets or in partnerships. A less common, but potentially advantageous option for larger real estate assets is to hold them in a limited liability company. This alternative offers interesting tax perspectives and structuring options.
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Social media accounts, such as Instagram accounts, are a very personal matter. This raises the question of what the heirs of an account can and cannot do with it. The Higher Regional Court of Oldenburg has now ruled that heirs may also actively use a social media account.
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Trade tax is a relevant cost factor for many companies in Germany. A significant change will come into force from the 2025 assessment period: the simple trade tax reduction will be reorganised. In the following, we will provide you with information on the details and the necessary measures.
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Even in 2025, cash-intensive companies will still face growing challenges: new legal requirements, the advance of digitalisation and increased tax audits by the tax authorities make professional cash management essential.
Our practical experience from current tax audits shows that, particularly in cash-intensive industries such as the gastronomy and hotel industries,
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The introduction of the global minimum tax will result in new obligations for large corporate groups. A central component is the group holding report, which will be relevant for the first time for the 2024 financial year. This article highlights the most important aspects that companies in Germany will have to consider in the future.
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For many employees and self-employed people, the home office has become an important part of their work in the age of the home office. But when and how can you claim costs for such a home office against income tax? And when might the home office be considered business assets?
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As an innovative way to raise capital in the blockchain space, ICOs offer numerous opportunities but also raise tax and regulatory issues. This post gives you an overview of the tax aspects of ICOs from a private and business perspective and shows how to avoid tax pitfalls.
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Many property owners have now received their local property tax assessment and are shocked to find that the property tax payable from 2025 has increased many times over in some cases. How can this be and what options do property owners have? This article explains the most important aspects of the property tax reform with a focus on Bavaria.
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In the case of a wealth/salary gap between spouses, the property settlement swing offers the possibility of transferring assets to the ‘poorer’ spouse independently of the gift tax allowance (500,000 EUR). If gifts have been made between the spouses without their knowledge in the past (e.g. by making payments into a joint account),
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At the beginning of the year, the Federal Fiscal Court (BFH) mentioned in its ruling of 28 February 2020 that land in hotel businesses is not a privileged business asset for tax purposes, but that the land is a harmful administrative asset.
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When it comes to long-term planning for the transfer and protection of family wealth, many families face an important decision: should a family-managed company or a family foundation be set up?
Both legal forms offer advantages in terms of asset succession, protection and management,
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The media often report on adult adoptions, most recently on that of Erwin Müller, founder of the Müller drugstore chain. After a rift between him and his son, he had three hunting friends adopt him. The “coffee king” Albert Darboven, on the other hand, failed with the adoption of Andreas Jacobs,
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Transfer prices, also known as transfer pricing, are an essential element of international tax planning and compliance for companies that conduct cross-border business. Transfer pricing refers to the prices charged between affiliated companies – for example, a German company headquarters and its foreign subsidiaries or branches – for goods, services,
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The introduction of the e-invoicing requirement from 1 January 2025 poses enormous challenges for smaller companies in particular. At the same time, it offers a great opportunity, because by switching to e-invoicing, companies can not only meet legal requirements, but also lay the foundation for comprehensive digitalisation and automation of their business processes.
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A foundation as a ‘legally independent estate’ also requires management and must be represented externally, similar to associations or corporations, for example. This task is performed by the foundation’s board of directors. This article takes a closer look at the tasks of the foundation board, its remuneration and liability issues.
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Digitalisation is bringing about many changes. This also affects the way invoices are received and issued.
With effect from 2025, the Growth Opportunities Act has introduced new regulations into the VAT Act that are important for business owners in Germany – and these include landlords! These changes are aimed at digitalising the process of issuing and receiving invoices.
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Decentralised financial markets (DeFi) are becoming increasingly important and offer investors a promising alternative to traditional financial systems. With attractive opportunities such as lending, staking or using liquidity pools, there are numerous ways to generate passive income in the crypto world.
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Inheritance tax law provides for extensive exemptions from inheritance tax for business assets. Now, a ruling by the Federal Fiscal Court (BFH) has caused a stir in family-run businesses in the hospitality industry: the court has stated, almost in passing, that these tax advantages do not apply to accommodation and,
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Companies that hold crypto assets are subject to general accounting and record-keeping obligations, as well as specific requirements regarding documentation, valuation and the tax treatment of transactions. Eight key aspects help to minimise risks and ensure compliance with legal and tax requirements.
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German inheritance law treats unmarried couples like strangers – regardless of whether the relationship has existed for weeks, months or decades or whether the couple is even engaged. That is why unmarried couples – with or without children – should organise their estate in such a way that their partner is considered and protected in the event of death.
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In the dynamic world of cryptocurrencies, there are numerous ways for companies to promote projects and build a dedicated community. These include airdrops, which are used to distribute tokens or coins to a broad mass of people for free.
We will show you how airdrops work in detail,
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Young people tend to suppress the topic of death and all other related issues. This is especially true when it comes to wills. But at the latest when it comes to getting married and starting a family, young couples should consider the topic of wills and make individual arrangements.
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If several people become heirs and want to divide the estate among themselves, a “division of the estate” must take place. This often leads to disputes. Especially if the testator has left a property. This is because real estate usually has a value that is difficult to estimate. The inheritance settlement agreement to be concluded between the heirs must take into account both the legal and tax aspects of the division of the property.
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Germans like to donate. And yet it is not always clear to citizens whether the recipient is reputable and whether the money is being used as the donor intended. In order to create more transparency, the nationwide donor register introduced on 01.01.2024 is intended to provide a remedy.
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The term “ESG” is currently on everyone’s lips. ESG is no longer just a buzzword, but an expression of a changed economic culture as a result of social change, climate change and political crises. But why should non-profit organisations (NPOs) devote themselves to this topic and position themselves accordingly for the future?
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In March 2024, the Federal Ministry of Finance (BMF) published a draft amendment on the taxation of cryptocurrencies. This draft clarifies tax declaration, cooperation and record-keeping obligations that were already discussed in July 2022 but not implemented. Our article sheds light on the details.
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Non-fungible tokens (NFTs) offer companies a wide range of opportunities for new business models and sources of income. These digital assets have the potential to fundamentally change the way digital and physical goods are handled. At the same time, NFTs present companies with complex VAT challenges.
We look at possible business models opened up by NFTs and then address the challenges that arise when it comes to NFTs and VAT.
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Utility tokens open up new business models and revenue streams for companies that would not be possible in traditional markets. This gives them flexible and innovative ways to finance, retain users, reduce costs and create a dynamic and engaging blockchain ecosystem.
But what about the taxation of utility tokens?
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The requirements of the tax authorities for electronic cash registers are strict: there is an obligation to use a recording system with a certified technical security device (TSE). Electronic cash registers must also be able to issue a receipt for each business transaction. From January 1, 2025, businesses can now electronically transmit the type and number of their cash registers to the tax office.
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The Hamburg tax office has decided that airdrops of the Ethereum Name Service (ENS) and the Terra Name Service (TNS) are taxable. However, this opinion has no normative binding effect for other tax authorities. It is at the discretion of each tax authority to take its own tax position. Our article sheds light on the details and implications.
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